Cannabis company debuts at premium

GISBORNE: Shares in medicinal cannabis company Rua Bioscience debuted on the NZX yesterday at 70c, a 20c, or 40% premium to its 50c issue price.

Rua is the first full equity listing since Napier Port’s debut on the exchange early this year.

The only other listed medicinal company is Cannasouth, which joined the NZX in June last year.

The Rua offer was for 40 million shares at 50c per share, accounting for a total 28.6% stake in the company.

It aimed to raise $20 million through the IPO, giving the overall business an implied value of $70 million.

Rua is chaired by Trevor Burt, who has previously served on the board of PGG Wrightson and several other entities.

The company’s product disclosure statement says it is a pharmaceutical company that is aiming to be a leading producer of cannabinoidderived medicines.

It was established in 2017, in part to support local economic development in Te Tairawhiti (East Coast) region.

It was the first company in New Zealand to obtain a licence to cultivate cannabis for research purposes.

Rua operates only in the medicinal part of the cannabis sector and has no plans to enter the recreational cannabis market. — The New Zealand Herald